George Will understands the real purpose behind Uncle Sam's takeover of General Motors. Here's the final paragraph of his column appearing in today's Washington Post:
The administration is determined to prop up GM as a jobs program for
the UAW and Midwestern states rich in electoral votes. This frenzy will
intensify as the administration's decisions deepen the debacle.
the UAW and Midwestern states rich in electoral votes. This frenzy will
intensify as the administration's decisions deepen the debacle.
Podcast RSS Feed
Full EconTalk Text
{ 14 comments }
"Says UAW President Ron Gettelfinger, 'It should be built here if it's going to be sold here.'"
How Mr. Gettelfinger reached this conclusion is a mystery to me. There is not so much as a strand of chewing gum to connect the conclusion to the premise.
Well duh.
Does it require a Ph.D. to figure this out?
It will be a jobs program, as Will says, for the mid-West, and just as importantly it will prop up the pensions and health care benefits for retirees in the Mid-west (with governmental subsidies, of course; that would be all of us, it takes a village-think, blah, blah, blah).
It will be worse for the overall wealth of society, but it remains to be seen if this political strategy pays "dividends" for Obama and/or the Dems. With the 2010 elections coming on, will having UAW pensioners dangling bring the bacon to the congresspersons "representing" the Mid-western populace (which of course included a larger proportion who are not auto pensioners)? Without a doubt I think the dangling pensioners will vote for Obama-enablers in overwhelming percentages. The question then is whether non-dangling citizens of the Mid-west will become less ignorant as voters.
Rustbelt, sometimes you just need to say these things out loud– maybe even shout them.
The really odd things not being talked about in the press is the plant closing schedule for GM. It hasn't changed. Those places are closing anyway.
"Says UAW President Ron Gettelfinger, 'It should be built here if it's going to be sold here.'"
So Hoosier-built Subarus, Ohio-built Hondas, and Kentucky-built Toyotas should not be sold in Michigan – right?
True_Liberal –
"So Hoosier-built Subarus, Ohio-built Hondas, and Kentucky-built Toyotas should not be sold in Michigan – right?"
What do you suppose Mr Gettelfinger means by "here?" Here in America? Here in Michigan? Here in Detroit? It's not clear from the context, but I don't think it makes much difference; an argument for one applies equally to the other. And all are equally wrong.
Hopefully a future Republican administration and Congress will not fear those votes and will therefore be willing to end Federal involvement. But I doubt it. US/UAW motors will be a permanent destination of taxpayer funding.
And unions everywhere now know that they need never worry about what effect their actions may have on the profitability of the companies their members work for. Union strikes will become more frequent, and their demands more extreme.
The best part about articles like this are the comments. They can make one's day a little better knowing that people are really that ignorant.
Thanks Dave. That's 10 minutes of my life I will never have back. All the stupid people, where do they all come from?
"What do you suppose Mr Gettelfinger means by "here?""
I think he means made by people who pay dues to him…
Well hell guys, thank God that Disingenious Kuehn, muirduck, Gil, et. al. are right about Obama and his administration not being socialist……man, can you imagine what our economy would look like if they were?
Redundant Chiken Littles like George Will shouldn't even be allowed space in any publication, right DK?
Is anyone privy to what execs are saying at other car companies regarding GM's takeover?
1) Are they thinking this is good because it means GM will produce cars people want even LESS than they have been?
2) Are they thinking this is bad because they will now be competing with the endless piggy-bank known as the federal budget?
3) Are they thinking this is bad because every new relevant policy will be geared at propping up GM relative to its competition?
People in the orbit of the UAW pensioneers run the businesses and provide the services that make their lives a little nicer, so they'll vote for the lefties too. Not to worry.
vidyohs -
RE: "Redundant Chiken Littles like George Will shouldn't even be allowed space in any publication, right DK?"
Huh?!? Why would you suggest something like that?